China’s manufacturing sector saw an unexpected rebound in August, bolstered by higher volumes of new orders and a notable rebound in export activity. The latest data from the RatingDog manufacturing purchasing managers’ index showed a reading of 50.5, comfortably exceeding economists’ expectations of 49.7 and marking the sharpest pace of growth since March.
This result represents a clear shift from July’s contraction, when the index stood at 49.5, suggesting renewed momentum within the industry. The improvement coincided with an extended pause in trade tensions with the United States.
Analysts noted that stronger new export orders fueled the pickup, signaling external demand remained intact despite ongoing tariffs. However, underlying domestic demand remains weak, suggesting the bounce may be short-lived rather than the start of a broad-based recovery.
Meanwhile, China’s official manufacturing PMI data released by the government showed activity contracted for a fifth consecutive month, with the index rising slightly to 49.4 in August from 49.3 in July.